It's been on my heart to talk about this for a while. Please note that this is not conventional investing wisdom I'm talking about here. In fact, it is pretty much contradicting conventional investing principles recommended by many. So though I feel like I'm pretty much against the grain here, I feel the need to share this because it has worked for me a couple of times. In fact, I would not be where I am financially had I listened and obeyed the principle as laid out and recommended by so many nowadays. But if anything, this is an invitation for us to think out of the box and not financial advice of any sorts.
We often hear people warn against buying into ATHs (all time highs). And I get that. Some people buy into ATHs and sometimes get caught in a place which they may panic sell due to the fact they were losing money. However, for me there were a number of occasions which I bought into ATHs before I heard of this principle. And those trades then became the pillars to my financial foundation. Couple of examples:
- I bought into BTC after it broke out of it's 500s (USD) and hit the 800s in late 2016/ early2017. It would have been considered an ATH after a long while. I FOMOed back into BTC after I sold most of mine at 600s (stupid I know).
- I bought into DASH after it hit it's 10s. Again, considered an ATH.
- I bought into XMR after it broke out of $2 to $13. Another ATH at that time.
- I bought into ETH close to $20, another ATH at that point of time.
I think we know what happened to the prices of the above from then on. Of course, we are in a different landscape now. Things have changed since. But my point is that rather than keep avoiding investing at ATHs and finally succumb to the FOMO spirit only to risk even more, why can't we get in earlier when the token just breaks out or somewhere near there?
My more recent example would be TRX. I actually recommended Tron to a friend to look into just days before it's breakout. He bought into it and before I could, TRX already did a 5X. By conventional wisdom, that would have been a no no. But I went ahead and bought into it. I later exited partially to take back my initial investment and finally my profits when the trend started to turn for TRX. Think I did a 3-4X in total from my investment. Was it risky? I guess so. But had I followed conventional wisdom, that would have been a 0 returns. Do I recommend doing this? Only if you know what you are doing. TRX had been very heavily shilled by Justin Sun during that time, so I was confident the market would buy into it. By now, the shilling has already lost it's effect, so unless anything major happens, I'll be leaving TRX alone for a while.
Again, my purpose of this post is really to challenge us to think more out of the box. Please do not take this as financial advice of any sorts.